Hyperscale Data secures up to $100 million financing agreement

Hyperscale Data, Inc. (NYSE American: GPUS) announced it has entered into a Securities Purchase Agreement for up to $100 million in financing from related party Ault & Company, Inc.

Under the agreement, Hyperscale Data will issue and sell up to $100 million in shares of Series H Convertible Preferred Stock to Ault & Company. Each preferred share has a stated value of $1,000 and will be convertible into common stock at a conversion price equal to the greater of $0.10 per share or the lesser of $0.79645 or a 5% premium to the volume weighted average price during the five trading days prior to conversion.

The preferred shares will pay a dividend at an annual rate of 9.5%, which the company may pay in shares of Class A Common Stock during the first two years. The shares include anti-dilution provisions and "full ratchet" price protection if the company issues securities at a lower price than the conversion price.

Hyperscale Data plans to use the proceeds for expansion of its Michigan data center to support infrastructure upgrades for high-performance computing services powering artificial intelligence solutions, debt repayment and general working capital purposes.

"The conversion price of the Preferred Shares is higher than the current market price. That A&C is willing to invest an additional up to $100 million, beyond the approximately $51 million that A&C has already invested in the Company in shares of two virtually identical series of preferred stock," said Milton "Todd" Ault III, Executive Chairman of Hyperscale Data and Chairman & CEO of Ault & Company.

The agreement provides for several closings through December 31, 2026, with dates potentially extended by Ault & Company. The transaction requires stockholder approval for conversions exceeding 19.99% of shares outstanding on the execution date, along with other customary closing conditions.

Through its subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center where it mines digital assets and offers colocation and hosting services for AI ecosystems and other industries.

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